Today's Markets Share Similarities with the 1990s, Yet We're Not Experiencing a Bubble.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy META?
Source: Barron's
Comparison to the 1990s: Investors are drawing parallels between today's equity markets and the late 1990s, particularly due to significant market gains.
S&P 500 Performance: The S&P 500 experienced over 20% growth for five consecutive years from 1995 to 1999, largely driven by the internet boom.
Current Market Drivers: Today's equity market gains are partly attributed to a substantial increase in spending related to artificial intelligence (AI).
Historical Context: The rise in AI-related investments is reminiscent of the technological advancements that fueled the market in the late 1990s.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 639.290
Low
655.15
Averages
824.71
High
1117
Current: 639.290
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Scale: Meta is set to invest $65 million in 2023 to support state politicians favorable to the artificial intelligence industry, marking its largest election investment to date and indicating a growing emphasis on political engagement.
- New Super PACs Established: The company is quietly launching two new super PACs, one backing Republicans and the other supporting Democrats, aiming to leverage political influence to counter regulatory threats to the AI sector.
- Funding Flow and Utilization: Last year, Meta allocated $45 million to the American Technology Excellence Project, with expectations that these funds will flow into the newly established PACs, thereby enhancing the company's political clout.
- Initial Spending Plans: Meta's expenditures are set to commence this week in Illinois and Texas, primarily backing incumbent Democratic and Republican candidates, reflecting the company's strategic inclination to maintain the existing political landscape.
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- Revenue Per Hour Growth: Reddit's Revenue Per Hour (RPH) surged by 92% in the U.S., significantly higher than Snap's 19% and Meta's 10%, demonstrating that increased ad loads and improved conversion rates are driving revenue growth.
- Time Spent Changes: In January, Instagram's daily average time spent per active user in the U.S. rose by 12%, while Reddit saw a decline of 9%, highlighting challenges with lower engagement from newer users and showcasing Instagram's advantages in content targeting.
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- Growth Engine: Analyst Bolton emphasizes that Nvidia is likely to remain the primary growth engine in the data center market, driven by surging hyperscaler spending needs, although competitive dynamics may pressure long-term positioning.
- Innovative Deployments: Meta will increase its use of Nvidia's Grace CPUs in its data centers and plans to deploy Nvidia's upcoming Vera CPUs at scale next year, marking the first large-scale deployment of Nvidia's technology, showcasing the depth of their collaboration.
- Efficiency Enhancements: Meta will also utilize Nvidia's Spectrum-X to boost network efficiency and adopt Nvidia's Confidential Computing for WhatsApp, enhancing AI capabilities while safeguarding user privacy, further solidifying Nvidia's market position in AI technology.
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- Oil Price Impact: WTI crude oil prices increased by 3.4% amid concerns over potential hostilities between the U.S. and Iran, raising costs for gasoline, transportation, and goods, which could negatively affect several stocks in the portfolio.
- Cybersecurity Concerns: Despite Palo Alto Networks exceeding earnings expectations, its stock fell 7.3% due to ongoing fears that AI could erode its market share, although the CEO argues that increased AI usage will drive demand for security solutions.
- Pharmaceutical Breakthrough: Bristol Myers' FDA-approved drug Camzyos has contributed to a 27% stock price increase over three months, but setbacks in trials for its Alzheimer's treatment raise investor caution regarding future performance.
See More
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- Flight Time Analysis: Analyst Brent Thill's calculations suggest that with a mid-sized jet, Karp's $17.2 million expenditure translates to approximately 2,457 flight hours annually, equating to about 28% of the year spent in the air, which raises questions about the necessity of such extensive travel.
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- Stock Price Forecast: Burry also presented a technical analysis suggesting a potential 58% downside for Palantir's stock, with a target price range of $50 to $60, intensifying market concerns regarding the company's future performance.
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See More
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- Investment Scale: Meta is set to invest $65 million in 2023 to support state politicians favorable to the artificial intelligence industry, marking its largest election investment to date and indicating a growing emphasis on political engagement.
- New Super PACs Established: The company is quietly launching two new super PACs, one backing Republicans and the other supporting Democrats, aiming to leverage political influence to counter regulatory threats to the AI sector.
- Funding Flow and Utilization: Last year, Meta allocated $45 million to the American Technology Excellence Project, with expectations that these funds will flow into the newly established PACs, thereby enhancing the company's political clout.
- Initial Spending Plans: Meta's expenditures are set to commence this week in Illinois and Texas, primarily backing incumbent Democratic and Republican candidates, reflecting the company's strategic inclination to maintain the existing political landscape.
See More
Performance Analysis of Social Media Platforms
- User Revenue Growth: According to Bank of America, Reddit experienced a 53% growth in Average Revenue Per User (ARPU) in the U.S. for Q4, outperforming Meta's 22% and Snap's 13%, indicating positive impacts from improved ad performance and ad load growth.
- Revenue Per Hour Growth: Reddit's Revenue Per Hour (RPH) surged by 92% in the U.S., significantly higher than Snap's 19% and Meta's 10%, demonstrating that increased ad loads and improved conversion rates are driving revenue growth.
- Time Spent Changes: In January, Instagram's daily average time spent per active user in the U.S. rose by 12%, while Reddit saw a decline of 9%, highlighting challenges with lower engagement from newer users and showcasing Instagram's advantages in content targeting.
- Mobile Download Trends: TikTok led in mobile download growth in the U.S. with a 137% increase, while Reddit faced a 36% decline, illustrating a stark contrast between TikTok's strong user acquisition performance and Reddit's user attrition.
See More
Nvidia's Multi-Year Deal with Meta Seen as Positive Catalyst
- Deal Impact: Nvidia's multi-year agreement with Meta is viewed by Needham as a positive catalyst for the chipmaker, with expectations of stock price increases despite unknown specifics, reflecting strong demand for AI infrastructure.
- Growth Engine: Analyst Bolton emphasizes that Nvidia is likely to remain the primary growth engine in the data center market, driven by surging hyperscaler spending needs, although competitive dynamics may pressure long-term positioning.
- Innovative Deployments: Meta will increase its use of Nvidia's Grace CPUs in its data centers and plans to deploy Nvidia's upcoming Vera CPUs at scale next year, marking the first large-scale deployment of Nvidia's technology, showcasing the depth of their collaboration.
- Efficiency Enhancements: Meta will also utilize Nvidia's Spectrum-X to boost network efficiency and adopt Nvidia's Confidential Computing for WhatsApp, enhancing AI capabilities while safeguarding user privacy, further solidifying Nvidia's market position in AI technology.
See More
Big Tech Drives Market Higher Amid Key Earnings
- Tech Stocks Surge: Nvidia's shares rose 2% following a multiyear partnership with Meta, which will utilize millions of Nvidia chips for its data center expansion, thereby enhancing its competitive edge in the tech sector.
- Oil Price Impact: WTI crude oil prices increased by 3.4% amid concerns over potential hostilities between the U.S. and Iran, raising costs for gasoline, transportation, and goods, which could negatively affect several stocks in the portfolio.
- Cybersecurity Concerns: Despite Palo Alto Networks exceeding earnings expectations, its stock fell 7.3% due to ongoing fears that AI could erode its market share, although the CEO argues that increased AI usage will drive demand for security solutions.
- Pharmaceutical Breakthrough: Bristol Myers' FDA-approved drug Camzyos has contributed to a 27% stock price increase over three months, but setbacks in trials for its Alzheimer's treatment raise investor caution regarding future performance.
See More
Burry Questions Palantir CEO's Travel Expenses
- High Travel Expenses: Palantir CEO Alex Karp's travel expenses reached $17.2 million in 2025, doubling from $7.7 million in 2024, raising concerns among investors about the company's financial management and resource allocation.
- Flight Time Analysis: Analyst Brent Thill's calculations suggest that with a mid-sized jet, Karp's $17.2 million expenditure translates to approximately 2,457 flight hours annually, equating to about 28% of the year spent in the air, which raises questions about the necessity of such extensive travel.
- Peer Comparison: Burry highlighted the stark contrast between Karp's travel costs and those of other tech CEOs, indicating potential mismanagement of company resources that could undermine investor confidence in Palantir.
- Stock Price Forecast: Burry also presented a technical analysis suggesting a potential 58% downside for Palantir's stock, with a target price range of $50 to $60, intensifying market concerns regarding the company's future performance.
See More
Stock Movements of Various Companies Analyzed
- Wingstop Stock Surge: Shares of Wingstop jumped approximately 13% due to an upbeat outlook, projecting flat to low-single digit same-store sales growth for fiscal 2026, despite a 5.8% year-over-year decline in same-store sales in Q4, which was better than the expected 6.7% drop by analysts.
- Moody's Earnings Beat: Moody's shares rose 6% after reporting adjusted Q4 earnings of $3.64 per share, exceeding the $3.43 expected by analysts, with revenue of $1.89 billion also surpassing the $1.86 billion consensus, and the company guiding for full-year adjusted earnings between $16.40 and $17 per share.
- Madison Square Garden Spin-off Plans: Madison Square Garden Sports saw a 13% increase in shares after announcing plans to consider spinning off its New York Knicks franchise from its New York Rangers business, potentially enhancing the market value and operational efficiency of both entities.
- Global Payments Optimistic Guidance: Global Payments shares surged 15% as the company projected earnings of $13.80 to $14 per share by the end of 2026, exceeding the $13.58 consensus, while also expecting adjusted net revenue growth of around 5%, higher than the 4.7% forecast by analysts.
See More
